CEECs Show High Business Cycle Correlation with Euro Area: Implications Ahead!
The article looks at how the business cycles of the euro area and Central and Eastern European countries are related. They found that some CEECs have a strong correlation with the euro area. The way researchers estimate this correlation can affect the results. CEEC central bankers tend to be more cautious in their estimates compared to academics and eurosystem researchers. However, there is no bias based on geography in the studies.